When Analyzing Direct Materials Price and Quantity Variances, the Responsibility

question 3

Multiple Choice

When analyzing direct materials price and quantity variances, the responsibility typically lies with

• A)controller and CFO.
• B)purchasing manager and production manager.
• C)purchasing and cost accounting manager.
• D)sales manager and production manager.

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Definitions:

Uncertainty

The state of being uncertain; situations in which outcomes, responses, or effects are unpredictable or unknown.

Framing

The way information is presented or communicated, which can influence an individual's understanding, interpretation, and decision-making.

Lack Of Participation

The absence or insufficiency of involvement by individuals or groups in activities or decisions that affect them.

Bounded Rationality

A concept suggesting that decision-making is limited by the information available, cognitive limitations of the mind, and time constraints.